1. remote working and pay
Complexities can potentially arise when it comes to salary and remote working as well as how companies set salaries for remote jobs. Should a developer based in San Francisco, where there is a higher living cost, be paid more than a person in the same role in Birmingham or have the same work from home compensation for example? They are doing the same work, but have completely different quality of life, taxes and wage policies.
Companies would need to collect global compensation benchmarking and employee data to design an equitable salary and benefits framework.
2. employee benefits in 2020 and 2021
It’s no surprise that employees will start to expect greater benefit packages that include additional support for remote working. Although a good basic pay remains the most sought-after employee value proposition (EVP) factor for most job seekers, requests for work from home allowances, new technology equipment and utility bill supplements are becoming more common.
While this change may at first seem impossible in the reality of the current economic climate, employers can consider freeing up savings made in other areas and repurpose these funds to support such benefits.
3. reskilling with cost benefit balance
For years, employers have been fighting over in-demand talent by entering a price war. It was not uncommon for a candidate to receive three job offers and eventually choose to work for the highest paying one.
However, this is no longer the case now as organisations are reducing overheads and expenses to stay afloat. Furthermore, employers are also under governmental pressure to create new jobs to help reduce the rising unemployment rate. With such stretched budgets, it is no longer realistic for employers to use generous remuneration packages to attract and secure talent. Half of this disrupted workforce could be re-skilled by employers with a positive cost-benefit balance.
HR leaders will need to review their internal workforce strengths and weaknesses to develop a comprehensive and updated talent strategy that would benefit the company in the future. While this may mean that they will not have the talent they want, employers have the opportunity to shape the workforce in the way they envision it to be.
For example, this would be a good opportunity for companies to zero in their investments on deep tech and build the workforce’s capabilities in these areas. Employers may also want to consolidate their business units to encourage more collaboration and build specialised teams in the process of doing so to optimise cost efficiencies. This would include having a strong internal knowledge transfer structure that will include upskilling and re-skilling initiatives aimed at strengthening the capabilities of their employees.
a shift to a client-led market
One of the biggest changes of recent times is that the market has pivoted from a candidate-led market to a client-led one, which means that employers now have the upper hand. However, regardless of whether companies are hiring or retrenching, it’s still critical for employers to protect their brand during a crisis, in the most considerate and empathetic way. People will always remember how you treat them, particularly during these challenging times.
5 tips for effective leadership in the new normal
1. fresh mindset in the new normal
Change your mindset in light of the new ways of working. HR professionals have new expanded responsibilities to help the business now. Apart from managing the workforce and organisational culture, they need to be more flexible and hands-on throughout the talent recruitment process. Many are expected to assume the role of business partners and work with business units to hire and manage talent.
In light of COVID, many governments around the world have introduced new policies to reduce talent management costs and hiring programmes. In addition to adjusting to unchartered waters such as remote workforce management and engagement, HR professionals are expected to be more involved in helping their organisation save costs by leveraging such policies, subsidies and schemes.